FG to adopt Full Cash Accounting policy, January 2014

Federal Government Monday said that it will adopt Full Cash basis of Accounting from January 2014. The Minister of State for Education, Chief Ezenwo Wike, who disclosed this at the three-day training workshop on the International Public Sector Accounting Standard, IPSAS, organised for Bursars of Unity Schools in Abuja also said that the country would adopt Accrual basis in January, 2016.

Chief Wike said that the country considered the importance of the new accounting policy to be introduced that it organised the training workshop so as to prepare the bursars in the schools for the take-off of the IPSAS.

He said, “AS you are well aware, new initiatives and programmes fail and become ineffective when operators are not effectively trained or provided the relevant resources for implementation.

“When we fail to plan, we plan to fail. We definitely desire to make this programme a success in Nigeria. Therefore, failure is not an option and you will be provided the required training and resources to make it a success to enhance our national development and place of pride in the comity of nations.”

The Minister reminded the participants that the International Federation of Accountants, IFAC, and the World Bank emphasised the need to strengthen public sector financial management of emerging economies as an integral part of good governance and effective public service delivery.

Wike said, “The best way to achieve this goal is to develop relevant competencies which will enhance the management of public sector financial resources effectively, efficiently and in line with international best practices.”

The minister advised them to be very careful when handling tax payers’ money, stressing that little mistake could have ‘expensive implications.’

He explained that IPSAS represented the set of accounting standards governing accounting functions for public sector organisations and that government all over the world are established by the International Public Sector Accounting Standards Board, IPSASB.

“The objective is to improve the quality of general purpose financial reporting in the public sector leading to better assessments of resource allocation by government with increased transparency and accountability,” he stated.